Investments with equivalent risk to zambeef stock

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Reference no: EM132069370

Suppose you expect ZamBeef’s stock to pay dividends of K 0.56 per share in the coming year and trade for K 45.50 per share at the end of the year. Investments with equivalent risk to ZamBeef’s stock have an expected return of 6.80%.

I. Given the above information, what is the most you would pay today for ZamBeef’s stock?

II. Given the above information, what dividend yield would you expect at the price you obtained in question (I)?

Reference no: EM132069370

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